Eircom slashes jobs in bid for recovery

Republic of Ireland incumbent Eircom plans to cut 2,000 staff over the next 18 months as it seeks to bounce back from a torrid set of results in the year to end-June.
 
The layoffs will take Eircom’s staff base down to 3,700, a move the carrier claims will bring it into line with the average number of staff and operational costs for European firms of similar size. It also plans to update its work practices, and consolidate offices as part of the cost cutting.
 
Herb Hribar, chief executive of Eircom Group, says the challenges facing the telco “require a fundamental transformation in the way we are organized, the business activities we prioritize, and the work practices we have adopted in order to substantially reduce our costs and become more efficient.”
 
The firm last month revealed EBITDA dropped €104 million to €542 million in the year to end June, on a 10% decline in revenue. However, operating costs were also lower – down 7% year-on-year.